Gladstone Investment Corporation 7.125% Series A Term Preferred Stock (GAINP)

GAINP was a series of term preferred stock issued by Gladstone Investment Corporation, a business development company that invests in debt and equity of lower middle market private businesses in the U.S. The shares paid a fixed dividend of 7.125% a year on a $25.00 liquidation preference, paid monthly. As term preferred, they carried a mandatory redemption date of February 28, 2017. About 1.6 million shares were outstanding, for a total liquidation preference of $40.0 million.

Gladstone Investment itself was incorporated in Delaware in February 2005 and went public on NASDAQ in June 2005 under the symbol GAIN. It is externally managed by Gladstone Management Corporation and is known for paying monthly distributions. Term preferred stock gave the company a fixed-rate funding source that counts as equity-like leverage under BDC rules. The Series A was the first of several such issues, later followed by Series B, C and D.

In September 2016 Gladstone Investment sold a new 6.25% Series D Term Preferred Stock due 2023 under the ticker GAINM. It said it would use the proceeds to redeem the Series A shares and to repay borrowings on its credit facility. The full $40 million of Series A was redeemed during the quarter ended December 31, 2016, at $25.00 per share plus accrued and unpaid dividends. GAINP then stopped trading.

Gladstone Investment's common stock continues to trade on NASDAQ as GAIN. The company has since redeemed its later term preferred series as well and refinanced with other instruments.